One of the best bull signals you will find is where a narrow
rectangle forms immediately below major resistance. Buying support
is strong enough to prevent a retracement and normally it is only
a matter of time before a breakout.

A rectangle that forms immediately after a breakout, above the
former resistance level, is also bullish. Buyers and sellers are
evenly matched, but support is likely to outlast resistance, resulting
in an upward continuation. However, the pattern is more prone to
failure: a close below the former resistance level is a bearish sign.

Volume should decline during the consolidation and spike up at the breakout.
Note, after the breakout, how volume also declines on retracement back to the new resistance level at $13.00
and spikes upward on the reversal.

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